Daily Tax Update - August 8, 2005

Today, the Treasury Department and the IRS released the 2005-2006 Priority Guidance Plan, commonly referred to as the business plan. The Priority Guidance Plan contains 254 projects to be completed over a twelve-month period, from July 2005 through June 2006. The projects in the business plan affect individuals, corporations, charities, international transactions and employee benefit plans. In addition to the items in the body of this year’s plan, the Appendix lists the more routine guidance that is published each year.

  • IRS Commissioner Mark Everson said, "Guidance provides a real service to taxpayers by clarifying how the IRS interprets the law. The results of the new plan, published over the next 12 months, will help taxpayers comply with the law."
  • This year’s plan also includes 2 new items under the Industry Issue Resolution Program. The Internal Revenue Service and the Treasury Department today announced the Industry Issue Resolution (IIR) Program will address concerns relating to "member of a family receiving assistance" requirements for the Work Opportunity and Welfare to Work Tax Credits and the definition of home construction contracts. Currently, Revenue Ruling 2003-112 provides guidance on when an individual meets the "member of a family receiving assistance" requirements.
  • Large and Midsize Business Commissioner Deborah Nolan said, "The IIR program provides clarity and consistency to complex tax issues, while reducing[the] burden for taxpayers. These are issues that can be resolved for groups of affected taxpayers so that they do not become contested issues during tax examinations."
  • The guidance plan can be accessed here.  

As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them.  Read  more information on Steptoe's tax practice

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